A Legacy Through Millennia

Do Informal Institutions Matter for Climate Change?

Jianxian Wu

Abstract

Societal functioning needs both formal and informal institutions. However, the existing body of literature predominantly emphasizes the influence of formal institutions on climate change, often neglecting the role of informal mechanisms. This article draws on clan networks in China to investigate the influence of informal institutions on county-level carbon emissions. Using the historical number of Confucian temples as an instrumental variable, the findings suggest that informal institutions contribute to an unexpected increase in carbon emissions. This effect is attributed to corruption and deficiencies in environmental enforcement. Gender diversity among local leadership mitigates the adverse effects associated with informal institutions.

JEL
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